Trade Group Announces More Insurers To Stop Dropping Coverage for Sick

Bloomberg
reports that Karen Ignagni, CEO of America’s Health Insurance Plans, said in a
letter that companies will end the practice beginning in May, ahead of the
September 23 deadline set by the new health reform law. “Our community is
committed to implementing the new standard in May 2010 to ensure that
individuals and families will have greater peace of mind when purchasing
coverage on their own,” Ignagni wrote, according to the news report.

Democrats from three
U.S. House committees wrote to seven health insurance executives urging them to
immediately ban rescission except in cases of fraud or intentional
misrepresentations, and to institute third-party reviews of any decision to
drop coverage.